Right now I still think that it makes sense to do the split and maximize the property.  

Use the existing rents for evaluation - - they're real and all your marketing may not yield improvements.If there's known vacancy issues, then adjust the the GSI (sum off all rents * 12 months) and subtract the loss rents from vacancies (number of units vacant * average rents * number of months their empty) . 

That said, you can typically buy them at better yields, but you need to be prepared to deal with defaults.My advice would be to start with performing assets which are under professional licensed servicing and where a complete pay history can be provided which shows consistent payments and loan status is current. 

The 3 plans were similar, all homes being 3 stories to maximize square footage on narrow lots, and used a ton of porch space to make up for the smaller yards.  

Strategies such as direct mailing, probate, driving for dollars, networking, etc. will eventually yield off market deals and these are the only deals you could find that will cash-flow in a super hot market.Second, I'd like to share a thought that is true to any type of investing, real estate, stocks etc. and that is: "the masses are assess" if EVERYONE go to the west side why would you want to go there too?  

You may try to hire a builder to build out the house yourself and then sell it to maximize your return, but that could be risky if you have no experience doing this type of work.

But on the flip side 1sts tend to have lower percentage yields than 2nds.It's when an asset is upside down (in terms of equity) that it really becomes statistical based on previous data and tougher to talk about without getting too granular.Best,Dave

To keep things simple, qualify the old property thusly:If [ rent * 75% - PITIA ] yields a positive number, owning the departing residence will not impact DTI in a negative way.

Even as demand for rentals rises amid a falling home ownership rate, yields are declining and companies formed to buy the homes that have gone public haven’t yet been profitable.Funds are buying property now, including homes sold by Carrington, for rents that yield 6 percent to 8 percent a year, before costs such as insurance, taxes and vacancies, according to Rose.

They are more of a high yield opportunistic fund vs Blackstone which entered the space later once the earlier players proved the model would work.